Anand Rathi sees strong Q1FY27 for FMCG; HUL, Marico top picks on lower crude, GST cuts
Anand Rathi expects FMCG to deliver a strong Q1FY27 driven by premiumisation, GST cuts and softer crude oil prices aiding margins. Top picks include HUL (TP ₹2,700), Marico (TP ₹865), GCPL (TP ₹1,400) and Mrs. Bector (TP ₹250). Sector seen posting 10% revenue and 14% earnings CAGR over FY26-28.
What happened
Hindustan Unilever · Anand Rathi expects strong Q1FY27 for FMCG on premiumisation, GST cuts and lower crude aiding margins. Top picks include HUL, Marico, GCPL,
Key facts
- TP HUL ₹2,700
- TP Marico ₹865
- TP GCPL ₹1,400
- TP Mrs. Bector ₹250
- TP Restaurant Brands Asia ₹93
- 10% revenue CAGR FY26-28
- 14% earnings CAGR FY26-28
- 4% paint price hike June
Why this matters
A favorable cost backdrop and premiumisation tailwind raise sector valuations, making this a window to evaluate bolt-on premium brand acquisitions before earnings momentum is fully priced in.
What to watch
- Brent/crude oil price trajectory and palm oil costs
- GST council implementation timeline and pass-through to MRP
- Q1FY27 volume growth disclosures vs realisation growth
- Rural vs urban demand divergence in monthly FMCG data
- Monsoon progress and rural wage trends
- Other brokerages issue corroborating or contrarian FMCG sector notes
- Institutional rotation into defensive consumer staples ahead of Q1FY27 prints
- Company guidance updates on volume vs price-led growth at earnings calls
- Distributors restock anticipating GST-cut-driven demand uptick